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Your credit report--a type of consumer report--contains information about where you work and live and how you pay your bills. It also
may show whether you've been sued or arrested or have filed for bankruptcy. Companies called consumer reporting
agencies (CRAs) or credit bureaus compile and sell your credit report to businesses. Because businesses use this information to evaluate your
applications for credit, insurance, employment, and other purposes allowed by the Fair Credit Reporting Act (FCRA), it's important that the information in
your report is complete and accurate. This is something you can do without spending money on a Credit Repair Company. See our Credit Repair Help page for more information.
Some financial advisors suggest that you periodically review your credit report for inaccuracies or omissions.
This could be especially important if you're considering making a major purchase, such as buying a home. Checking in advance on the accuracy of
information in your credit file could speed the credit-granting process.
Correcting Errors
Under the FCRA, both the CRA and the organization that provided the information to the CRA, such as a bank or credit card company, have
responsibilities for correcting inaccurate or incomplete information in your report. To protect all your rights under the law, contact both the CRA and the
information provider.
First, tell the CRA in writing what information you believe is inaccurate. Include copies (NOT originals) of
documents that support your position. In addition to providing your complete name and address, your letter should clearly identify each item in your report
you dispute, state the facts and explain why you dispute the information, and request deletion or correction. You may want to enclose a copy of your report
with the items in question circled.
CRAs must reinvestigate the items in question--usually within 30 days--unless they consider your dispute
frivolous. They also must forward all relevant data you provide about the dispute to the information provider. After the information provider receives
notice of a dispute from the CRA, it must investigate, review all relevant information provided by the CRA, and report the results to the CRA. If the
information provider finds the disputed information to be inaccurate, it must notify all nationwide CRAs so they can correct this information in your file.
Disputed information that cannot be verified must be deleted from your file.
- If your report contains erroneous information, the CRA must correct it.
- If an item is incomplete, the CRA must complete it. For example, if your file showed that you were late making payments, but failed to show that you were no longer delinquent, the CRA must show that you're current.
- If your file shows an account that belongs only to another person, the CRA must delete it.
When the reinvestigation is complete, the CRA must give you the written results and a free copy of your
report if the dispute results in a change. If an item is changed or removed, the CRA cannot put the disputed information back in your file unless the information
provider verifies its accuracy and completeness, and the CRA gives you a written notice that includes the name, address, and phone number of the
provider.
Also, if you request, the CRA must send notices of corrections to anyone who received your report in the past six
months. Job applicants can have a corrected copy of their report sent to anyone who received a copy during the past two years for employment purposes. If a
reinvestigation does not resolve your dispute, ask the CRA to include your statement of the dispute in your file and in future reports.
Second, in addition to writing to the CRA, tell the creditor or other information provider in writing that you
dispute an item. Again, include copies (NOT originals) of documents that support your position. Many providers specify an address for disputes. If the provider
then reports the item to any CRA, it must include a notice of your dispute. In addition, if you are correct-that is, if the disputed information is not
accurate-the information provider may not use it again. Accurate Negative Information When negative information in your report is accurate, only the
passage of time can assure its removal. Accurate negative information can generally stay on your report for 7 years. There are certain exceptions:
- Information about criminal convictions may be reported without any time limitation.
- Bankruptcy information may be reported for 10 years.
- Credit information reported in response to an application for a job with a salary of more than $75,000 has no time limit.
- Credit information reported because of an application for more than $150,000 worth of credit or life insurance has no time limit.
- Information about a lawsuit or an unpaid judgment against you can be reported for seven years or until the statute of limitations runs out, whichever is longer. Criminal convictions can be reported without any time limit.
Adding Accounts to Your File
Your credit file may not reflect all your credit accounts. Although most national department store and all-purpose bank
credit card accounts will be included in your file, not all creditors supply information to CRAs: Some travel, entertainment, gasoline card companies, local
retailers, and credit unions are among those creditors that don't. If you've been told you were denied credit because of an "insufficient credit file" or "no
credit file" and you have accounts with creditors that don't appear in your credit file, ask the CRA to add this information to future reports. Although
they are not required to do so, many CRAs will add verifiable accounts for a fee. You should, however, understand that if these creditors do not report to
the CRA on a regular basis, these added items will not be updated in your file.
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